The Development Bank of Kazakhstan Joint Stock Company has issued an offshore renminbi bond worth two billion yuan ($139.9 million) in Hong Kong, marking the first ever RMB bond offering by a Central Asian issuer.
The three-year bond, with a yield of 3.35 percent, was launched on Tuesday with the assistance of China International Capital Corporation. It’s also the first time a Central Asian entity has listed RMB bonds on the special administrative region’s market.
Investor demand was strong, with orders from participants like supranationals, commercial banks, funds and asset managers pushing the book to a peak of five billion yuan. The bond was ultimately priced at a final guidance of 3.35 percent, and 40 basis points tighter than the initial price guidance.
CICC said DBK’s offshore RMB bond underscores the bank’s confidence in the cross-border RMB system, while reaffirming the commitment of China and Kazakhstan to deepen financial collaboration and advance capital market connectivity.
The successful transaction also provides a stable RMB financing channel for infrastructure projects and supports greater regional economic integration, CICC said.
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Financial links between China and Kazakhstan have been expanding, with Hong Kong serving as a key platform. Last month, Kazakhstan mining firm Jiaxin International Resources Investment completed a dual primary listing in the Kazakh and the SAR markets.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the listing showcased the diversity of international participation in Hong Kong’s financial market, and reflected the results of the city's cooperation with Central Asia in promoting the Belt and Road Initiative.
